Bonanza for Bihar staff, pensioners

In a Puja-eve bonanza, Bihar government on Wednesday okayed the hike in pension to its retired employees, as recommended by the VIth Pay Commission, notionally from January 2006 and actually from April 2007. The dearness allowance of pensioners and employees is also up from 54% to 64% of the basic while the cap on gratuity is up from Rs 3.5 lakh to Rs 10 lakh. The largess, which will benefit around 3.56 lakh pensioners, will lead to a recurrent additional annual expenditure of Rs 1,000 crore. The government will also pay Rs 1,700 crore as arrears to the pensioners in three instalments __ 15% in the current financial year, 40% in 2010-11 and 45% in 2011-12. The hiked pension is likely to be disbursed from the current month itself. Cabinet principal secretary Girish Shankar said for the employees who have retired before January 1, 2006, there will be a 40% addition to the existing pension apart from the dearness relief. The minimum family pension will now be Rs 3,500 per month. For those who retired after January 1, 2006, the pension amount will be 50% of the last emoluments or average of the last ten months’ salary, whichever is higher. The government has also decided to pay 20% more in addition to the revised pension for pensioners in the age group of 80-85 years. This `extra’ will be 30% for pensioners aged 85 to 90 years; 40% for those aged 90 to 95 years and 50% for the pensioners in the age group of 95-100 years. Pensioners aged 100 years or more will get 100% additional pension. The government has announced dearness relief at the rate of 2% from July 1, 2006; 6% from January 1, 2007, 9% from July 1, 2007, 12% from January 1, 2008, 16% from July 1, 2008 and at the rate of 22% from January 1, 2009. The government has also announced three additional increments for members of the state judicial service as recommended by the Shetty Judicial Pay Commission.

Source : The Times of India.